Analysts Have Made A Financial Statement On HORNBACH Holding AG & Co. KGaA's (ETR:HBH) First-Quarter Report

It's been a pretty great week for HORNBACH Holding AG & Co. KGaA (ETR:HBH) shareholders, with its shares surging 16% to €102 in the week since its latest quarterly results. Results overall were respectable, with statutory earnings of €8.80 per share roughly in line with what the analysts had forecast. Revenues of €1.9b came in 3.7% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, HORNBACH Holding KGaA's six analysts currently expect revenues in 2026 to be €6.34b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 4.1% to €9.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.31b and earnings per share (EPS) of €9.42 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for HORNBACH Holding KGaA

There's been no major changes to the consensus price target of €107, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic HORNBACH Holding KGaA analyst has a price target of €117 per share, while the most pessimistic values it at €95.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting HORNBACH Holding KGaA is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that HORNBACH Holding KGaA's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 3.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that HORNBACH Holding KGaA is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HORNBACH Holding KGaA following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that HORNBACH Holding KGaA's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €107, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on HORNBACH Holding KGaA. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple HORNBACH Holding KGaA analysts - going out to 2028, and you can see them free on our platform here.

You can also view our analysis of HORNBACH Holding KGaA's balance sheet, and whether we think HORNBACH Holding KGaA is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.